Overview
- Cyrille Bolloré on Wednesday urged Universal Music Group’s board to reject Pershing Square’s unsolicited proposal, saying the price was too low, the cash relied heavily on UMG’s own money, and Bill Ackman’s management style did not fit the company.
- The Bolloré family directly owns about 18.4% of UMG and Vivendi holds about 13.4%, a combined stake that gives them effective veto power over any transaction.
- Pershing Square’s offer values UMG at roughly €55.8 billion and proposed €9.4 billion in cash plus 0.77 shares of new stock per UMG share, with funding pledged from Pershing Square cash, debt and a planned sale of UMG’s Spotify stake and a move of UMG’s primary listing to the U.S.
- UMG’s board has publicly backed CEO Sir Lucian Grainge and the company’s strategy, and Ackman has acknowledged that the bid cannot succeed without Bolloré’s support, leaving the plan stalled unless terms change or new backers emerge.
- The standoff highlights how large strategic shareholders can block activist bids and could reshape future M&A approaches in media by raising questions about valuation, use of target-company cash, and governance changes that affect artists, employees and investors.